A Stimulus Program finally works, runs out of money in 1 week!
WSJ: ‘Cash for Clunkers’ Runs out of Gas
Good article from the WSJ on the governments cash for clunkers program. Congress allocated $1 billion and it is gone in a week! A couple of quotes from the article:
Congress had expected the $1 billion set aside for the rebates to last several months and set up the program to expire Nov. 1.
Congress rocks at forecasting! Maybe they can use some of the $50 billion they set aside for mortgage modification. Bankers can get up to $3,000 from the government for modifying a mortgage, but a clunker is work $4,500. It seems like the stimuli are a little out of whack for the desired outcomes.
Let us hope that Uncle Sam can figure out a way to extend the “clunker” program. Many government programs are already “clunkers” but this one seems to have some economic benefit.
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